Global technology firm Pagaya has recently completed a significant financial transaction, the PAID 2025-5, involving $500 million in asset-backed securitisation (ABS) supported by consumer loans generated through its platform.
Transaction Details
The deal was expanded beyond its initial target of $400 million and achieved a AAA rating from Kroll Bond Rating Agency (KBRA). This transaction marks the fifth fully-prefunded PAID transaction for Pagaya in 2025, aligning with the company’s ongoing commitment to its ABS programs. Following this achievement, Pagaya has also closed the Auto RPM 2025-4 deal, bringing their year-to-date ABS issuance across personal loan, auto, and point-of-sale sectors to approximately $4.6 billion.
Participation and Scaling Strategy
The transaction attracted participation from 30 unique investors, including five new ones, with four of these being newcomers to Pagaya’s capital markets program. The company aims to continue scaling its investor base and financing flexibility through its ABS and forward-flow programs, thereby fostering the growth of lending partners and institutional investors.
Company Background
Since 2018, Pagaya has completed 75 securitisations, raising nearly $31 billion in capital to fund loans originated through its network. This underscores the company’s robust infrastructure and consistent ability to deliver repeatable securitisations across various asset classes.
Commentary
In a statement from Pagaya representatives, it was highlighted that this latest PAID transaction reinforces investor interest in their network’s capabilities. Pagaya focuses on delivering financial products and services designed to support individuals while enhancing the broader ecosystem through machine learning, data networks, and AI-enabled approaches.
Recent Developments
In late May 2025, Pagaya issued $300 million in asset-backed securities aimed at expanding its consumer lending operations into the BNPL industry. The funding was intended to finance BNPL loans originated by Klarna. This initiative marks a new direction for Pagaya, as it shifts from traditionally securitising unsecured personal and auto loans.